The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: Income Statement Sales (net) $ 245,675 Cost of Goods Sold (67,500) Gross Profit $ 178,175 Operating expenses (125,000) Operating Income $ 53,175 Interest revenue 5,600 Interest expense (8,750) Income before taxes $ 50,025 Income tax expense (15,008) Net Income $ 35,017 Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company. 20.36% 21.64% 19.65% 14.25%
The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: Income Statement Sales (net) $ 245,675 Cost of Goods Sold (67,500) Gross Profit $ 178,175 Operating expenses (125,000) Operating Income $ 53,175 Interest revenue 5,600 Interest expense (8,750) Income before taxes $ 50,025 Income tax expense (15,008) Net Income $ 35,017 Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company. 20.36% 21.64% 19.65% 14.25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015:
Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company.
| Income Statement | |
| Sales (net) | $ 245,675 |
| Cost of Goods Sold | (67,500) |
| Gross Profit | $ 178,175 |
| Operating expenses | (125,000) |
| Operating Income | $ 53,175 |
| Interest revenue | 5,600 |
| Interest expense | (8,750) |
| Income before taxes | $ 50,025 |
| Income tax expense | (15,008) |
| Net Income | $ 35,017 |
Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company.
20.36%
21.64%
19.65%
14.25%
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